Rapid7 (NASDAQ:RPD) Shares Gap Down – Should You Sell?

Rapid7, Inc. (NASDAQ:RPD) shares gapped down before the market opened on Monday . The stock had previously closed at $14.27, but opened at $13.74. Rapid7 shares last traded at $14.1620, with a volume of 209,763 shares.

Wall Street Analyst Weigh In

Several research analysts recently issued reports on RPD shares. Barclays cut Rapid7 from an “equal weight” rating to an “underweight” rating and cut their target price for the company from $18.00 to $15.00 in a research report on Monday. Wall Street Zen raised shares of Rapid7 from a “hold” rating to a “buy” rating in a report on Saturday. Morgan Stanley reiterated an “outperform” rating and issued a $18.00 target price on shares of Rapid7 in a research note on Thursday, December 18th. DA Davidson dropped their price target on shares of Rapid7 from $16.00 to $14.00 and set an “underperform” rating on the stock in a research report on Wednesday, November 5th. Finally, Piper Sandler cut their price target on shares of Rapid7 from $19.00 to $16.00 and set a “neutral” rating on the stock in a report on Monday. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, thirteen have assigned a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat, Rapid7 presently has an average rating of “Hold” and a consensus target price of $21.47.

Rapid7 Stock Up 1.7%

The company has a market capitalization of $956.66 million, a PE ratio of 42.97 and a beta of 0.79. The stock’s fifty day moving average is $15.38 and its two-hundred day moving average is $18.86. The company has a current ratio of 1.19, a quick ratio of 1.19 and a debt-to-equity ratio of 7.01.

Rapid7 (NASDAQ:RPD) last announced its quarterly earnings data on Tuesday, November 4th. The technology company reported $0.57 EPS for the quarter, topping the consensus estimate of $0.45 by $0.12. Rapid7 had a net margin of 2.61% and a return on equity of 67.30%. The business had revenue of $217.96 million for the quarter, compared to analyst estimates of $216.14 million. During the same quarter in the previous year, the firm posted $0.66 earnings per share. The company’s revenue for the quarter was up 1.5% on a year-over-year basis. Rapid7 has set its FY 2025 guidance at 2.020-2.090 EPS and its Q4 2025 guidance at 0.370-0.44 EPS. As a group, analysts predict that Rapid7, Inc. will post 0.35 EPS for the current year.

Insider Activity

In other Rapid7 news, Director Mike Burns acquired 2,000 shares of the company’s stock in a transaction on Thursday, November 20th. The shares were acquired at an average cost of $13.80 per share, with a total value of $27,600.00. Following the completion of the acquisition, the director directly owned 5,000 shares in the company, valued at $69,000. This trade represents a 66.67% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Jana Partners Management, Lp bought 41,545 shares of Rapid7 stock in a transaction dated Friday, November 28th. The stock was acquired at an average price of $15.71 per share, with a total value of $652,671.95. Following the purchase, the director directly owned 6,760,149 shares of the company’s stock, valued at approximately $106,201,940.79. This represents a 0.62% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Over the last three months, insiders have bought 67,345 shares of company stock worth $1,025,202. 2.40% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. Headlands Technologies LLC bought a new position in shares of Rapid7 in the second quarter worth $44,000. CI Investments Inc. grew its position in Rapid7 by 48.4% during the third quarter. CI Investments Inc. now owns 2,281 shares of the technology company’s stock worth $43,000 after buying an additional 744 shares in the last quarter. Abich Financial Wealth Management LLC bought a new position in Rapid7 in the 3rd quarter worth about $44,000. State of Alaska Department of Revenue purchased a new stake in shares of Rapid7 in the 3rd quarter valued at about $53,000. Finally, Cetera Trust Company N.A boosted its position in shares of Rapid7 by 34.6% during the 2nd quarter. Cetera Trust Company N.A now owns 4,730 shares of the technology company’s stock valued at $109,000 after acquiring an additional 1,215 shares during the last quarter. 95.66% of the stock is owned by institutional investors.

About Rapid7

Rapid7, Inc is a publicly traded cybersecurity company headquartered in Boston, Massachusetts. Since its founding in 2000, the company has specialized in delivering cloud-based security data and analytics solutions designed to help organizations detect, investigate, and remediate cyber threats. Rapid7 operates under the NASDAQ symbol “RPD” and serves a broad range of industries, including technology, financial services, healthcare, retail, and the public sector.

The core of Rapid7’s offering is its Insight platform, a unified, cloud-native security operations and analytics suite.